Buy existing Scirocco currently on PCP or new deal ????

[j4xxc]

HELP and advice gratefully received PLEASE!

Have spent a lot of time searching previous forum posts regarding PCP versus Personal Loan etc but cant seem to find someone in a similar situation to me.

Here's the deal.

1. Currently have an existing VW Scirocco on a PCP. Two year deal runs out in March. Original cost of car = £21,869 and put in £3000 deposit leaving £18869 with a final payment of £12,224.70 due March 2013. Original APR was 7.9%. Currently paying £389 per month for an 18k miles per annum deal (and I do do that mileage)
2. I could purchase at £12,224 with a loan from Tesco finance over 3 years at a cost of approx £370 or somewhere near that. So car would be 5 years old when it was paid off.
3. VW have offered me a new Scirocco (same spec GT but theyve upgraded the spec now to leather and other things as standard). The car now costs more than it did 2 years at £24,152 after 6% discount. The deal that they have offered me is £14500 for my existing car, giving me £2275 equity, plus £1500 additional deposit they will put in, plus they are wanting another £3000 from me - totalling £6775.00 deposit (more than last time but the car of course more expensive in 2013). That leaves £17377 to finance with a lower final payment than the current PCP of either £10,957 after 2 years or £9,180 for 3 years. The monthly cost will be £408 for 2 years or £340 for 3 years on a 7.1% APR.

OR

4. I could borrow £18,877 from Yorkshire Bank at a rate of 7.4% APR (thats me putting in another £3,000 plus the £2,275 equity thats in the car - total deposit £5275). YB personal loan would cost me £375.63 for 5 years for a brand new car

Am completely bamboozled at what to do next for the best - any advice very much welcomed from peeps who have been at this crossroads before with an existing PCP... Im hardly thick but not exactly mathematician of the year and am really struggling to work out which would be in my best interests...

HELP or suggestions of any other different ways to do the deal....

YF Bamboozled Scirocco Driver !

[okie592]

Personally I would hand it back to vw and get another one one 2 year lease deal with no interest and all the servicing tires six included for most likely a little bit less

3k sounds like a lot to have to be dishing out with quite high monthly payment with intrest

This rococo must be due a facelift shortly or a whole new replacement to bring it in line with the new golf plus the tt due I'm 2014

[ModernAndy]

I'd get a new PCP. Not much more for a new (and better car) with full warranty and less chance of breakdown. Why pay nearly as much to buy a used car?

[Lucky13]

http://www.swiftlease.co.uk/car-leasing/Volkswagen...

[tbc]

unless you wipe your backside with £100 notes these days

I just cannot understand why any would buy a new car over a pre reg or year old and save yourself 25%

and it's a VW so reliability is hardly an issue

2011 Scirocco GT for £15-16k

[Wacky Racer]

"I could borrow £18,877 from Yorkshire Bank at a rate of 7.4% APR"

Surely you can do better than that?..(And I bank with them)

[ED209]

tbc said:

unless you wipe your backside with £100 notes these days

I just cannot understand why any would buy a new car over a pre reg or year old and save yourself 25%

and it's a VW so reliability is hardly an issue

2011 Scirocco GT for £15-16k

Really? my scirocco totally lunched its engine after 12000 miles.

[j4xxc]

Wacky Racer - that was just a basic quote off the website - Ive not phoned them up yet as an existing customer, but in theory that should be the highest APR that I could get with them...could no doubt get lower if I go in branch

[Deva Link]

ModernAndy said:

Why pay nearly as much to buy a used car?

The key work there is "buy" - once he's paid the loan off he'll own the car. If he takes another PCP he's back to zero at the end of it.

Interesting that the price of the new one has gone up but the GFV has come down.

OP: You're bamboozled because there isn't a right or wrong answer. PCPs are designed to get you into a new car every 2 or 3 years, you're not really supposed to keep the car.
But then getting a new car every 2-3 years is never going to make sense from a financial point of view. The thing no-one else can advise on is how much a shiny new car is worth to you.

[j4xxc]

Deva Link said:

The key work there is "buy" - once he's paid the loan off he'll own the car. If he takes another PCP he's back to zero at the end of it.

Interesting that the price of the new one has gone up but the GFV has come down.

OP: You're bamboozled because there isn't a right or wrong answer. PCPs are designed to get you into a new car every 2 or 3 years, you're not really supposed to keep the car.
But then getting a new car every 2-3 years is never going to make sense from a financial point of view. The thing no-one else can advise on is how much a shiny new car is worth to you.

DEVA - Yes, I was particularly surprised that the cost for the 2012 model has gone up - but does now include satnav as standard, leather, bluetooth which my 2011 GT doesnt have ... The new GFV did puzzle me as they are not bad at holding their value.... in dealer speak (ie Ill tell you what makes me money...) "go for a 3 year dealt because even at 9k GFV youll have a fair bit of equity in it"... I know that theres no right or wrong answer on Personal Loan Vs PCP but always interested in hearing others experiences. Cost probably get about £15.5k for my existing one with 28k miles on in white if I sold it privately ??

ALso - I have asked VW about what they are doing about changing the car as its been in general circulation now for all on 5 years... they say not at the moment are there any changes.... any ideas ??

[snorkel sucker]

Does it have to be another Scirocco? You can go elsewhere and see what pix they offer you.

It also sounds like VW aren't giving you much - have you negotiated? Id be looking for at least my £3k deposit back PLUS their contribution, put no more money down AND keep your repayments the same or lower. Interest rates have come down the last 2 years - the rate they are offering you is too high.

Id go back and negotiate with them. Or go elsewhere and see what's on offer.

[BlueMR2]

Including your £3k deposit you have paid just over £12k for 2 years hire of a Scirocco.

So an average of £500 per month + insurance and fuel and possibly servicing as well I imagine.

If you are renting then you want the lowest deposit and i imagine the highest gfv so you pay as little as possible per month before you hand it back.

[j4xxc]

snorkel sucker said:

Does it have to be another Scirocco? You can go elsewhere and see what pix they offer you.

It also sounds like VW aren't giving you much - have you negotiated? Id be looking for at least my £3k deposit back PLUS their contribution, put no more money down AND keep your repayments the same or lower. Interest rates have come down the last 2 years - the rate they are offering you is too high.

Id go back and negotiate with them. Or go elsewhere and see what's on offer.

SNORKEL - thats my thought... I didnt really want to use another 3k out of my money ... of course this is purely their first offer - this bird doesnt accept the first offer lol. I do want another Scirocco - I do quite high miles hence the other reason with my OP - dont really want a 5 year old car with circa 90k on the clock by the time Ive finished with it.... maybe there is my answer PL vs PCP.... ??

[j4xxc]

BlueMR2 said:

Including your £3k deposit you have paid just over £12k for 2 years hire of a Scirocco.

So an average of £500 per month + insurance and fuel and possibly servicing as well I imagine.

If you are renting then you want the lowest deposit and i imagine the highest gfv so you pay as little as possible per month before you hand it back.

Couldnt agree more BlueMR2 - this is why I am particularly bamboozled. I dont really want to be putting anymore ££ in and I want a high GFV - what they are offering is too low. Its not like the Scirocco is performing poorly in the resale value stakes..

[poing]

If you buy the car then after 3 years you can take a payment break while you decide what to do. If you then want to get a new car you will have more than enough left in the car you now own to cover the deposit on a new PCP.

I think if I was in your situation I'd go for the purchase option because it gives the greatest flexibility.

Not sure I'll convince the other half to do similar next year when her PCP is up though

[CooperS]

tbc said:

unless you wipe your backside with £100 notes these days

I just cannot understand why any would buy a new car over a pre reg or year old and save yourself 25%

and it's a VW so reliability is hardly an issue

2011 Scirocco GT for £15-16k

I thought this until BMW offered a 3.9% rate apposed to buying an 18 month old car (and out dated model) at a rate of 8.9%.

I'm waiting on my new 1 Series

[j4xxc]

poing said:

If you buy the car then after 5 years you can take a payment break while you decide what to do. If you then want to get a new car you will have more than enough left in the car you now own to cover the deposit on a new PCP.

I think if I was in your situation I'd go for the purchase option because it gives the greatest flexibility.

Not sure I'll convince the other half to do similar next year when her PCP is up though

Cheers Poing - its a tough one really although I do agree with BlueMR2 if I look that it has cost me £12k over two years - that feels particularly frightening if you look at it that way !!!!

[poing]

j4xxc said:

poing said:

If you buy the car then after 5 years you can take a payment break while you decide what to do. If you then want to get a new car you will have more than enough left in the car you now own to cover the deposit on a new PCP.

I think if I was in your situation I'd go for the purchase option because it gives the greatest flexibility.

Not sure I'll convince the other half to do similar next year when her PCP is up though

Cheers Poing - its a tough one really although I do agree with BlueMR2 if I look that it has cost me £12k over two years - that feels particularly frightening if you look at it that way !!!!

All you've paid is the deprecation though, that's inevitable on any car bought new regardless of the method used to buy it. The longer you keep it the less it will depreciate each year.

Alternatively look for any online deals for a new PCP from people like Ling Cars (if you can ignore the terrible web site) and maybe even take those figures to your dealer to see if they can improve their offer?
http://www.lingscars.com/Volkswagen/Scirocco-leasi...

[j4xxc]

poing said:

All you've paid is the deprecation though, that's inevitable on any car bought new regardless of the method used to buy it. The longer you keep it the less it will depreciate each year.

Alternatively look for any online deals for a new PCP from people like Ling Cars (if you can ignore the terrible web site) and maybe even take those figures to your dealer to see if they can improve their offer?
http://www.lingscars.com/Volkswagen/Scirocco-leasi...

Cheers POING - Ill have a look there - tbh can def deal with cheesy websites lol

[BlueMR2]

poing said:

If you buy the car then after 3 years you can take a payment break while you decide what to do. If you then want to get a new car you will have more than enough left in the car you now own to cover the deposit on a new PCP.

I think if I was in your situation I'd go for the purchase option because it gives the greatest flexibility.

Not sure I'll convince the other half to do similar next year when her PCP is up though

If he buys it, he will have a 5 year old car at the end with 70kmiles but he is going to have 2 mot's to go through with whatever bills they bring as well as normal service maintenance maintenance, cambelts due at all? as well as wear items being needed, it all adds up.

As someone said above, take a peak at 6-12 month old cars and try to buy over 3 years, getting a fairly big saving from list before getting the finance.

If you can then get the finance low you'll have your own car after 3 years whilst having 2 of them under warranty.

Personally i like older cars and i'd be spending 2-5k on a nice older car and keeping the rest to look after the extra maintenance and fuel costs.

I'd much rather drive a 15yr old, well looked after V8 Mercedes or BMW car full of leather with a nice sounding engine than a brand new fairly common 4pot car costing me twice as much.

If you like the Scirocco then by all means go for it, i don't really fit in small hatches so i wouldn't buy one, but check out what you can get for £10k on the used market.